Who Wants To Be A T&e Brainiac? #1

10 Questions | Total Attempts: 130

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Tax Quizzes & Trivia

Want to challenge your knowledge or just have a little fun? Take our "Who wants to be Estate Planning Brainiac" quiz. You will have 6 minutes to answer 10 multiple choice questions. Get 10 out of 10 correct and you are a certified Estate Planning Brainiac. You'll receive a prize just for playing.


Questions and Answers
  • 1. 
    If someone died in 2010, does the estate automatically escape federal estate taxation?
    • A. 

      Yes

    • B. 

      No

    • C. 

      Only if death occurred before the 2010 Tax Act was signed into law.

  • 2. 
    By what date must the election out of estate tax be filed?
    • A. 

      December 31, 2011

    • B. 

      September 17, 2011

    • C. 

      January 15, 2012

    • D. 

      July 15, 2012 if the estate requests and the IRS grants an extension.

  • 3. 
    In which of the following circumstances will it almost certainly make sense to stay IN the Federal estate tax system for a 2010 decedent?
    • A. 

      If the decedent's gross estate is less than $5 million

    • B. 

      If the basis of the carryover basis assets is less than their date of death value and no estate tax would be due

    • C. 

      Where there is no state estate tax

    • D. 

      When the estate consists in significant part of the right to income in respect of a decedent.

    • E. 

      None of the above

    • F. 

      All of the above

  • 4. 
    If a client transfers an insurance policy on his life to an irrevocable trust and dies the following year, how much of the insurance proceeds will be included in the client's estate?
    • A. 

      None

    • B. 

      33%

    • C. 

      100%

  • 5. 
    Which is likely to best the most efficient estate and generation-skipping transfer tax reduction strategy for property with the potential for appreciation?
    • A. 

      "Rolling" grantor retained annuity trusts

    • B. 

      Direct gifts to GST exempt trust

    • C. 

      Installment sale to a GST exempt trust

    • D. 

      Create a life insurance trust, fund it with cash and purchase a low cost term life insurance policy.

  • 6. 
    What is "DNI?"
    • A. 

      Descendant's Net Income

    • B. 

      Distributed Net Income

    • C. 

      Distributable Net Income

  • 7. 
    What duty did the Treasury Department impose upon the practitioner in charge of the firm's tax or trusts & estates department under circular 230 as of August 2, 2011?
    • A. 

      Ensure that all clients are advised of penalties reasonably likely to be imposed and any opportunity to avoid such a penalty through disclosure.

    • B. 

      Ensure that every person (including non-lawyers and non-CPAs) who prepare a substantial portion of any Federal tax return have a PTIN

    • C. 

      Must take affirmative steps to ensure that the firm has adequate procedures in effect for all members, associates, and employees for complying with all of the provision of Circular 230

    • D. 

      Survey all tax practitioners in the firm to ensure that all clients have appropriately reported all Reportable Transactions

  • 8. 
    Which of the following is true?
    • A. 

      If the Republicans sweep the Senate, House and White House in 2012, it is virtually certain the Federal estate tax will be repealed

    • B. 

      If the Democrats sweep, it is virtually certain the estate tax exemption will drop to $1 million and the rate increased to 55%

    • C. 

      If no party sweeps, it is virtually certain no changes will be made to the estate tax system

    • D. 

      Repealing the Federal estate tax will increase America’s gross domestic produc

    • E. 

      Repealing the Federal estate tax may increase Federal tax revenues and, in any case, the ramification of estate tax repeal (other than on Federal government tax collections) are minimal

    • F. 

      None of the above are true

  • 9. 
    Do Crummey withdrawal powers allow gifts to qualify for the GST annual exclusion?
    • A. 

      Yes

    • B. 

      No

    • C. 

      Only in certain circumstances

  • 10. 
    Which of the following statements about life insurance are true?
    • A. 

      If a policy of insurance is acquired by an irrevocable life insurance trust and the insured dies within three years, the policy proceeds will be included in the gross estate of the insured

    • B. 

      Policy proceeds are always excluded from gross income

    • C. 

      The income tax basis of a policy of insurance is premiums paid

    • D. 

      None of the above are true

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